June 16, 2010
Competitor offers insights that can benefit your business
By: Lori L. Mavrigian
I recently received a press release from a leading chain of transmission and auto care service centers that was titled "Why Use Auto Repair Chain for Repairs?" It provides some interesting facts and figures which pertain to independent tire dealerships that compete with the chain for a share of the automotive service pie.
The company, Cottman Transmission & Total Auto Care, feels there are good, solid reasons for customers to keep coming back to repair chains instead of going to auto dealerships for service: high quality customer service, quality repairs, the best deals and convenient locations.
1. Customer service focus -- Chain auto repair shops make the customer's vehicle repair their first priority, says Cottman. Auto repair is their core business; at the dealership, service is second to sales. "Rather than hand your keys over to a service writer or service manager, technicians at chains like Cottman will personally get to know your car's needs, and will build a long lasting relationship with you and your family."
It reported that a J.D. Power and Associates study done in August 2009 of service satisfaction at 35 repair chains and dealerships plus hundreds of independent neighborhood shops showed dealerships continue to lose business to repair chains and independent shops, which increased their market share to 59%.
Part of the reason for this is that auto repair centers don't have the added pressures of making new car sales, says Cottman, and can therefore focus on providing correct solutions for a great price. "Given declining new-vehicle sales…dealers must rely more than ever on their service and parts operations," says Darren Slind, J.D. Power and Associates.
2. Quality repairs. Because of their size, chain automotive centers can offer state-of-the-art workmanship in the general automotive repair business. "And because of the reputation of the chain, they won't compromise standards just to make a vehicle 'superficially drivable,'" says Cottman. "They aim to do the job right the first time, eliminating low quality service that would result in increased costs, inconvenience, and possible hazardous driving conditions for their customers down the road."
In chain auto repair shops, technicians stand behind their work. Cottman reports some of its technicians are listed on AAA's Approved Auto Repair list and some Cottman centers are members of the Better Business Bureau (BBB). "Cottman technicians are privy to the same technical and repair information as dealerships, honoring most extended warranties. These technicians stay up-to-date on all service bulletins and product improvements, and offer a personal touch" to the repair work.
3. The best deals. Repairs at a new car dealership cost an average of 34% more than those at independent repair shops, resulting in $11.7 billion in excess costs to consumers annually, according to a new study released by the Automotive Aftermarket Industry Association (AAIA), Cottman reports.
Chain auto repair shops also tend to use high-quality aftermarket parts, which cost a lot less than the dealership factory parts. There also tend to be lower overhead costs, such as labor pricing. Also, many chain repair shops offer money-saving promotions and coupons to reduce the customer's repair rate, Cottman notes.
4. Convenient locations. Auto repair chains are convenient because there are many locations to choose from. "Cottman locations are convenient to its customers; where they work, play, and go to school," the firm says. (Cottman notes it picks up customers and offers free vehicle towing for a major repair.)
Personal relationships, quality repairs at a decent price, good locations -- all good reasons to relate to your customers on why they should come to you for their auto service needs.
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Author: Lori L. Mavrigian | Posted @ Wednesday, June 16, 2010 8:36 AM
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